According to the paper.cn news, just yesterday, May 3, Issued on the website of the people's Bank of China: notice of the General Office of the people's Bank of China on further clarifying matters relating to the Administration of Foreign Securities Investment of qualified domestic Institutional investors in RMB (< Circular >)
The so-called renminbi qualified investors (RQDII,RMB Qualified Domestic Institutional Investor) refers to domestic financial institutions that have obtained permission from the financial regulatory bodies of the State Council to own RMB funds or raise RMB funds from domestic institutions and individuals. Renminbi-denominated products invested in overseas financial markets (except for overseas use of bank-owned funds).
The Circular stipulates that RMB qualified investors who carry out overseas investments may not remit RMB funds out of the country to purchase foreign exchange. At the same time, information shall be submitted to the Shanghai headquarters of the people's Bank of China on the basic situation of qualified investors in RMB, the depositary bank, the source and size of funds, the investment plan, the inflow and exit of funds, and the situation of foreign holdings.
According to the notice of the people's Bank of China on matters related to overseas Securities Investment of qualified domestic Institutional investors of RMB (Yinfa (2014) No. 331), issued in 2014, RMB qualified investors may own RMB funds or raise RMB funds from domestic institutions and individuals, and invest in RMB-denominated products in overseas financial markets (except for overseas use of their own funds by banks).
At the same time, the principal and income of overseas investment of RMB qualified investors shall be returned to the domestic RMB escrow account in the form of RMB through an offshore RMB escrow account.
The Circular also requires domestic depositary banks to strengthen the authenticity and compliance examination of overseas investment behavior of RMB qualified investors in accordance with relevant regulations and trade exhibition principles, so as to ensure that the relevant business is carried out in accordance with the rules and regulations in accordance with the law, According to Yinfa (2014), it is required to send the relevant information to the people's Bank of China through the RMB cross-border receipt and payment information management system.
The text reads as follows:
To be clear, after the new deal came into effect, the road to transfer domestic assets in the name of overseas investment no longer worked, and foreign exchange controls are now becoming stricter.